Last update on 2024-06-07

Corcept Therapeutics (CORT) - Piotroski F-Score Analysis for Year 2023 (Final Score: 7/9)

Comprehensive Piotroski F-Score analysis of Corcept Therapeutics (CORT) for 2023 with a final score of 7/9. Detailed evaluation of profitability, liquidity, and efficiency.

Short Analysis - Piotroski Score: 7

We're running Corcept Therapeutics (CORT) against the Piotroski 9-criteria scoring system to assess profitability, liquidity, and operating efficiency:

The Piotroski F-Score helps investors see how strong a company's financial position is, using 9 different criteria focused on profitability, liquidity, and efficiency. Corcept Therapeutics (CORT) got a score of 7 out of 9, indicating strong financial health. They scored high because they have positive net income, good cash flow from operations, leverage is decreasing, operating cash flow is higher than net income, the number of shares is not diluted, and their asset turnover is improving. They didn't score points for ROA growth, current ratio, or gross margin growth.

Insights for Value Investors Seeking Stable Income

Based on the analysis, Corcept Therapeutics (CORT) shows strong financial health with a Piotroski F-Score of 7. This makes it a fairly strong candidate for investment. However, pay attention to their decreasing ROA, current ratio, and stagnant gross margin, as they can indicate underlying issues. Overall, it’s worth considering for further investment research.

For those who are interested in delving deeper into the specifics, the subsequent section provides a comprehensive exploration of the criteria.

Profitability of Corcept Therapeutics (CORT)

Company has a positive net income?

Net income is an essential metric as it reflects a company's profitability. A company with consistent positive net income is typically more stable and potentially more attractive to investors.

Corcept Therapeutics (CORT) has reported a net income of $106.1 million for the year 2023, which is positive. This marks a significant continuation of its profitable trend with consistently positive net income figures since 2014. The trend is indicative of the company’s sustained profitability, a positive sign for investors. Therefore, it earns 1 point in the Piotroski score for this criterion.

Company has a positive cash flow?

Cash Flow from Operations (CFO) refers to the cash a company generates from its core business activities. Positive CFO indicates strong operational performance.

Corcept Therapeutics (CORT) reported a positive Cash Flow from Operations (CFO) of $127,039,000 in 2023. This is an indication of strong operational performance. Over the last two decades, Corcept has transitioned from consistently negative CFOs between 2003 and 2013 to positive figures starting from 2015 onwards. Notably, the company has maintained positive CFOs above $100 million from 2016 to 2023, demonstrating resilience and stability in its core business. This positive trend is favorable and adds one point to the Piotroski score for CORT.

Return on Assets (ROA) are growing?

Change in ROA stands for the Return on Assets. It measures how efficiently a company is using its assets to generate profits compared to the previous year.

For Corcept Therapeutics (CORT), the ROA decreased from 0.2014 in 2022 to 0.1762 in 2023, yielding a 0 score as the criterion requires an increase to add a point. Over the last two decades, CORT's ROA peaked in 2017 at 0.85 and generally performed below the industry median, which has seen a gradual decline from 0.4108 in 2003 to 0.4518 in 2023. The decreasing trend in both CORT's ROA and the industry median suggests potential room for efficiency improvements within the company.

Operating Cashflow are higher than Netincome?

Assess whether Operating Cash Flow is higher than Net Income and why this criterion is important for Corcept Therapeutics (CORT). It indicates the quality of earnings and the company's cash generation efficiency.

In 2023, Corcept Therapeutics (CORT) demonstrates solid financial health as its Operating Cash Flow stands at $127,039,000, exceeding its Net Income of $106,140,000. This positive cash flow indicates high-quality earnings and efficient cash generation. Historically, the company's cash flow trajectory has transitioned from negative in earlier years to significantly positive in recent years. For instance, in 2015, the Operating Cash Flow was merely $3,130,000 compared to a soaring $127,039,000 in 2023. Consequently, CORT adds 1 point in the Piotroski analysis for good cash flow metrics.

Liquidity of Corcept Therapeutics (CORT)

Leverage is declining?

Change in Leverage criterion examines the shift in a company's leverage (debt levels) from one period to another. It is important as increased leverage can indicate higher risk, while decreased leverage signifies a healthier balance sheet.

The Leverage for Corcept Therapeutics (CORT) increased from 0.002 in 2022 to 0 in 2023, indicating a more stable balance sheet with less reliance on debt financing. This is a positive trend for investors concerned about financial risk. Over the past two decades, leverage fluctuated, with a notable spike in 2011, reaching 0.7064. The recent decrease in leverage continues a broader trend of maintaining lower levels of debt, suggesting prudent financial management. Therefore, 1 point is added for the Piotroski score.

Current Ratio is growing?

Change in Current Ratio reflects a company's ability to pay short-term obligations. It is important for liquidity assessment.

The current ratio for Corcept Therapeutics (CORT) decreased from 6.8871 in 2022 to 4.3887 in 2023, indicating a reduction in its short-term liquidity. This is a negative trend as it may reflect a potential issue in meeting short-term liabilities despite being above the industry median of 5.7831 in 2023. Given the Piotroski criterion, this would result in a score of 0 because the current ratio decreased.

Number of shares not diluted?

Change in Shares Outstanding refers to the variation in the total number of shares issued by a company. It is pivotal as it impacts earnings per share (EPS) and market perceptions.

In 2023, Corcept Therapeutics has an outstanding share count of 103,560,000 compared to 106,787,000 in 2022. This indicates a reduction of 3,227,000 shares, or approximately 3.02%. This reduction can be viewed positively as it often signals share buybacks, potentially increasing EPS and shareholder value. Historically, CORT’s shares have fluctuated significantly, but the current trend shows a notable reduction akin to strategic buybacks. Given this decrease, a score of 1 is awarded.

Operating of Corcept Therapeutics (CORT)

Cross Margin is growing?

The criterion is to assess the change in Gross Margin from one year to the next, considering CORT Compassionate Therapeutics' optimization in production and cost management.

Comparing the Gross Margin of 0.9866 in 2023 with 0.9866 in 2022, we observe no change. While the value remains high compared to industry medians, the lack of movement indicates stagnation, scoring a 0 for this criterion. CORT's Gross Margin consistently outperformed industry values in recent years, underscoring operational efficiency.

Asset Turnover Ratio is growing?

Asset Turnover measures a company's efficiency in generating sales from its assets. It is crucial in determining how effectively a firm utilizes its assets to produce revenue.

Corcept Therapeutics (CORT) has seen a slight increase in Asset Turnover from 0.798 in 2022 to 0.8007 in 2023. This measure is an indicator of the company's improved efficiency in generating revenue from its asset base. Over the past 20 years, we can see significant fluctuations in the Asset Turnover ratio, reflecting the company's evolving efficiency in utilizing its assets. Although the incremental increase from 2022 to 2023 is small, it is a positive sign. Therefore, we add 1 point for the increase in Asset Turnover for 2023.